High Time For Government To Adopt Long-Term Policies

The Argentine government has made yet another attempt to ease its import bill by increasing taxes on high-end vehicle and motorcycle purchases from non-Mercosur countries from January 6 2012. Given that Argentina has already put several regulatory and protectionist hurdles in place for autos industry participants, we believe that the current measure will further reduce its attractiveness to foreign investors. In BMI's recently updated Risk/Reward Ratings for the autos industry in the Americas, Argentina fell from fourth position last quarter to sixth, with a below-average score of 56.3 points.

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